Insight of the Week: Inventory Analysis

What happens when your physical count is not what you expect?

Despite conducting monthly physical inventories, this distributor found a significant discrepancy between the recorded ending inventory and the physical count, leading to an inability to grapple with inventory shrink and significant balance sheet  adjustments each month.

A more in-depth investigation and analysis pinpointed the cause as primarily due to user deviation from prescribed operational processes and data-entry issues. This prompted the company to increase training, implement end-of-day warehouse controls, and tackle system issues, greatly improving inventory tracking accuracy.

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